Online Exclusive: Managing your e-estate

Composer and conductor Leonard Bernstein’s memoir allegedly has been trapped inside a computer since his 1990 death. “The rumor is they still can’t crack his computer password,” says Susan Nixon, an estate attorney with Burke & Casserly, PC in Albany.

Just as Al Capone’s vault turned up empty, Bernstein’s memoir may be a modern myth. But it illustrates an increasingly prevalent problem. What becomes of our electronic estate?

“This is a very new area and it’s very, very muddy,” says Nixon.

“The phenomenon is becoming more and more of an issue, because people have more and more of their lives online,” says Clifford Rohde, principal of Rohde Law & Mediation in Albany.

Without forethought, we could leave our heirs with administrative nightmares. They may be unable to close e-accounts, even by providing a death certificate. Important documents and precious photographs could be lost in limbo. If we own a blog site, domain name or website, what’s it worth and who gets it?

Such questions have spurred Connecticut, Rhode Island, Indiana, Oklahoma and Idaho to pass laws addressing control over the deceased’s digital assets. Similar legislation is pending in Nebraska and North Carolina. New York has no such provision yet — just Penal Law 156, which prohibits unauthorized access to accounts, says Nixon.

“This is where people get into hot water,” she says. “I take care of my mother’s affairs. When she dies, my power of attorney authority dies with her. Technically I’m no longer authorized. The bank doesn’t automatically know when she dies. I can still log on at 2 a.m. in my pajamas and make transfers, but technically, I’m breaking the law, even if I’m not doing anything nefarious.”

Online businesses have different contracts, some of which deny access to anyone but the original user. “You really have to look at the terms of service of any of the particular providers,” Rohde says.

Planning for the disposition of our e-legacy can be as important as dictating what happens to our business, house and minor children. What’s the best way to deal with your digital estate?

“The A number one thing to do would be to share with your loved one, if not the account information, the place where you keep the information,” says Rohde, noting that survivors should be careful, as “there’s a possibility of an allegation of fraud if someone pretends to be the person who passed away.”

Here are some important steps to take, according to our experts.

Will it

Appoint a digital executor in your will, advises Nixon. “It should be a trusted person, first and foremost, and ideally, one who is tech-savvy,” she says. “That person would have the ability to access your computers, tablet, PC or iPod and work with your Internet service providers — the Googles, eBays and Yahoos out there — to marshall your assets.”

Your wishes

Just as a healthcare proxy indicates whether you want to stay on life support, you can specify in your will what should happen to your digital profile.

“Do you want me to keep your Facebook up or shut it down the day you die? Do you want a page where people can still post? How long do you want it out there? It’s a very personal decision,” says Nixon.

Don’t Delete

Save important computer files in a “No Delete” folder. Exclude passwords, lest they fall into the wrong hands.

Make a list

What was your high school mascot? Your first pet’s name? Create an inventory of all online accounts, passwords and security questions and share it with someone trustworthy.

“It’s not just a grocery list,” says Nixon. “Compile this list over a period of time. Every time you do something online, add it to the list. Update it regularly.”

Top ten

Here’s an A-list of e-assets to include:

1. Bank accounts

2. Brokerage accounts

3. Photo services such as picasa.com, Kodak.com and photobucket.com

4. Social networking sites such as Facebook, LinkedIn, Twitter and Foursquare

5. E-mail accounts such as Hotmail, G-mail, Yahoo and America Online

6. Internet service providers such as RoadRunner.com

7. Transaction services such as PayPal and eBay

8. Accounting services such as QuickBooks and TurboTax

9. Blog sites

10. Websites

A safe place

Now that you have your list, do you wrap it in foil and hide it in the freezer? Bury it in an ammo box in the backyard, five paces east of the stone wall?

“It’s very individualized,” says Nixon.

Paid services, such as legacylocker.com and assetlock.net, offer secure storage, says Nixon. They charge anywhere from $1.50 a month to a $300 one-time fee, she says.

You might e-mail your list in text format, write it longhand and make photocopies or print it on a spread sheet, delete the file and hand it to your e-executor, Nixon says. Alternatively, you could stow it in a fireproof safe at an accounting firm, law firm or home, she says, advising against putting it in a safe deposit box, as bank access can be limited and difficult.

Stashing your account log-in information on a flash drive or notebook isn’t necessarily a safe bet either, Rohde says. “If you keep them in a notebook and there’s a fire, all the information can be lost, or perhaps someone inadvertently walks away with the notebook,” he says. “If you have it on a flash drive, you could accidentally run it through the wash.”

Back it up

Having a backup is critical, says Rohde, who uses free software to keep track of his digital assets.

“It’s an add-on to your browser,” he says. “It’s pretty darned secure. It allows me to keep multiple user names across multiple browsers. It gives me very different passwords for each account and saves them. If you have a smartphone, you can search for ‘password’ and you’ll see a variety of apps that perform the same function.”

It’s important to inform your e-executor of the master password you use to log into such software, since by default, it creates passwords that are essentially impossible to remember, he says.